Kiwi software company Xero Limited (ASX: XRO) announced it will acquire Hubdoc, a data capture software solution that helps accountants streamline data collection and data entry.

Hubdoc has been part of Xero’s accounting ecosystem since 2014 and operates throughout North America, Australia and the UK. Hubdoc’s core solution automatically collects and allocates items from bank statements, bills and receipts from more than 700 banks, energy companies, telcos and suppliers.

That data can then be pushed into Xero’s powerful accounting suite.

Financial and accounting software that can ‘read’ bank statements is a key feature of fintech software for individuals and small businesses. Intuit Inc’s (NASDAQ: INTU) QuickBooks and many other competitors can also read bank statements.

“The acquisition of Hubdoc enables us to take the next step in delivering a platform that seamlessly connects small businesses with their financial data, and their accountants and bookkeepers,” Xero CEO Steve Vamos said.

The Hubdoc deal will cost Xero up to $US70 million in cash and Xero shares over the next 18 months. Hubdoc will continue as a stand-alone business, servicing non-Xero customers while continuing to deepen its ties with Xero’s core systems, which now connects to 700 integrated apps.

“What is exciting about this transaction is the opportunity to deeply partner with Xero in its mission to rewire the global small business economy,” Hubdoc’s co-founders and co-CEOs Jamie McDonald and Jamie Shulman said.